The Gym Group plc

Reported first-half revenue was GBP 121 million, up 8% year on year; average members were 953,000, up 4%; average revenue per member per month was GBP 21.16, up 4%; EBITDA less normalized rent was GBP 27.4 million, up 24%; EBITDA margin was 23%, up 3 percentage points; statutory profit before tax was GBP 3.3 million, up GBP 3.1 million; free cash flow was GBP 25.1 million, up 8%; and net debt fell by GBP 10.1 million to GBP 51.2 million, taking leverage to 1x EBITDA. For the full year, management expects like-for-like revenue growth of circa 3%, like-for-like cost growth of circa 2%, total CapEx of circa GBP 50 million, and 14 to 16 new gym openings. Management also said 2025 EBITDA less normalized rent is expected to be at the top end of analysts’ forecast range.

Will Orr framed the quarter as evidence that the company is executing on a structurally attractive UK market opportunity. He emphasized higher membership, improving mature-site performance, and continued investment in data, technology, pricing, retention, and gym design to lift returns and fund organic expansion. His tone was upbeat but disciplined, repeatedly stressing that the core focus remains the UK and that growth is being funded from free cash flow.

Luke Tait highlighted the main financial drivers: average members up 4% to 953,000, ARPM up 4% to GBP 21.16, revenue up 8% to GBP 121 million, and EBITDA less normalized rent up 24% to GBP 27.4 million. He said site costs were down 1% like-for-like in H1 thanks to lower electricity commodity costs and energy optimization, but expects inflation to return in H2 and full-year like-for-like site cost growth to be around 2%. He also detailed free cash flow of GBP 25.1 million, expansionary CapEx of GBP 12.6 million, total CapEx expected at about GBP 50 million, and net debt expected to end the year around GBP 60 million after second-half capex and working-capital unwind. He noted no cash tax is expected before 2028 and said the bank facilities were amended and extended to GBP 102 million with maturity pushed to 2028.

Analysts focused on capital returns, international expansion, cost pressure, pricing, openings, and the performance of workforce-dependent gyms. Management said it would not rule out international expansion, but for now the company remains focused on UK white space and mature-site improvement; share buybacks or other returns remain under active board consideration, but organic growth still offers better returns today. On costs, Luke Tait said first-half site costs benefited from lower commodity electricity prices, while second-half inflation should step up due to wage, NI, rates, and non-commodity electricity increases; on pricing, Will Orr said the company may flex pricing in line with inflation, while still seeing medium-term yield opportunity. Management also said new-site volumes are ahead of historical averages, helped by some promotional activity and a stronger gym aesthetic, and that the B2B2C pilot with Wellhub should be updated around March.